The Federal Reserve System Shuffle

1. The Federal Reserve System Shuffle A Federal Reserve Centennial Lesson that illustrates change over time (1945 to 1987).

2. Lesson Overview: This lesson demonstrates how the Federal Reserve System has adapted over time to meet the changing needs of the American people and the banking industry.

3. Lesson Themes: Because the U.S. economy and society changed considerably after WWII through the late 1980s, the Federal Reserve had to adapt and grow to fulfill the following responsibilities. Foster a stable and growing economy Promote consumer protection Provide efficient payment services to depository institutions

4. Foster a stable and growing economy Within this responsibility, the Federal Reserve System performs the following services: Provides an elastic currency Serves as a lender of last resort Influences the cost and availability of credit and the supply of money Adjusts monetary policy for current economic conditions and emerging trends Addresses certain economic or financial risks to the U.S. economy and banking system

5. Promote consumer protection Within this responsibility, the Federal Reserve System performs the following services to enforce consumer protection laws passed by Congress: Banking Laws passed by Congress Protects consumers against discrimination and unfair or deceptive business practices Regulations enacted by the Federal Reserve Board Ensures consumers adequate access to the goods and services offered by financial institutions, to promote consumer choice and a more competitive market. Federal Reserve Regional Bank Examiners enforce the rules Ensures that consumers receive adequate information to make informed financial decisions.

6. Provide efficient payment services provided to depository institutions Within this responsibility, the Federal Reserve System performs the following services: Distributes and processes cash and coins Distributes and processes checks and electronic payments Adopts new methods to keep pace with new technology and innovation to foster efficiency

7. Assign each student in your group one of the following Fed responsibilities: Foster a stable and growing economy Promote consumer protection Provide payment services to depository institutions Read through each card and decide, as a group, which Fed responsibility the card describes. Hand that card to the student assigned that responsibility. As you read the cards, record any unfamiliar terms or phrases on a flip-chart paper. Hang the paper on the wall nearest your group for teacher clarification. After all cards have been assigned, each student in the group is to move to the sign in the room that displays his or her responsibility. Within responsibility groups, compare cards to confirm you are holding the same cards. Discuss any cards that seem out of place for the responsibility or don’t have a match. Determine the proper responsibility for each card determined a mismatch. Distribute the mismatched cards to the students in your original groups according to their assigned responsibilities.

8. Foster a stable and growing economy 1. Bretton Woods Agreement (1944) 2. Employment Act of 1946 8. Federal Reserve Reform Act (1977) 9. Full Employment and Balanced Growth Act (Humphrey-Hawkins Act; 1978) Promote consumer protection 4. Truth in Lending Act (TILA; 1968) Equal Credit Opportunity Act (1974) Community Reinvestment Act (1977) 12. Expedited Funds Availability Act (1987) Provide payment services to depository institutions Diners Club (1950) ATM Invested (1969) Regulation J: Check Clearing and Wire Transfers (1980s) 11. Computerized Currency Counting Equipment: REI High-Speed Machine (1981)